Is Do Kwon from the Terra ecosystem going down? Prosecutors are directly seeking 12 years!

This all dates back to 2022. Terraform Labs’ $40 billion shocking collapse saw the TerraUSD stablecoin instantly go to zero, triggering a chain reaction that nearly dragged the entire market down with it—FTX’s bankruptcy was one of the aftereffects. Now, U.S. prosecutors have determined this was fraud, and the scale is so massive that a heavy sentence is a must.

What does 12 years mean? This could be the harshest regulatory blow the crypto space has faced to date. The prosecutors have laid out a solid chain of evidence: false advertising, market manipulation, creating systemic risk… any one of these is enough to land you in serious trouble.

The key date is December 11, when the U.S. District Court will deliver its final verdict. The outcome isn’t just about Do Kwon’s personal fate; it also serves as a warning to the entire industry—if anyone messes up like this again, this case will be the lesson.

Interestingly, this case may even become the benchmark for penalties in future similar cases. Stablecoin issuers and DeFi project teams all need to take note: the rules of the game have changed, and the era of wild growth is truly over.